Honda targeting 20 per cent growth in 2017-18

Honda is targeting a 20 per cent growth in two-wheeler sales for the FY 2017-18. The company’s plans to achieve this were laid out by Minoru Kato, the newly appointed president and CEO of Honda Motorcycle and Scooter India.

To achieve its target, Honda will be investing Rs 1,600 crore in the Indian market towards launching four new products (link here) and increasing production capacity. The company’s Karnataka manufacturing facility will be upgraded to increase its capacity by six lakh units a year. This should increase Honda’s overall production capacity to 6.4 lakh units a year. The Activa range has been the biggest contributor towards Honda’s growth in India, and the company will continue to focus on the scooter segment to maintain its stronghold. Honda will also work towards making India its export hub by 2020.

Honda breached the 50 lakh units milestone in the last financial year and will be looking at improving the number by 10 lakh units in this financial year. Right now, Hero MotoCorp is the only manufacturer to have sold more than 60 lakh two-wheelers in the Indian market in a single financial year.